Critical Review: ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY) vs. ONEX (OTCMKTS:ONEXF)

ROYAL MAIL PLC/ADR (OTCMKTS:ROYMY) and ONEX (OTCMKTS:ONEXF) are both mid-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares ROYAL MAIL PLC/ADR and ONEX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ROYAL MAIL PLC/ADR N/A N/A N/A
ONEX 16.67% -7.16% -0.74%

Valuation and Earnings

This table compares ROYAL MAIL PLC/ADR and ONEX’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ROYAL MAIL PLC/ADR $13.50 billion 0.19 $343.61 million $1.19 4.20
ONEX $23.79 billion 0.23 -$663.00 million N/A N/A

ROYAL MAIL PLC/ADR has higher earnings, but lower revenue than ONEX.

Dividends

ROYAL MAIL PLC/ADR pays an annual dividend of $0.35 per share and has a dividend yield of 7.0%. ONEX pays an annual dividend of $0.26 per share and has a dividend yield of 0.5%. ROYAL MAIL PLC/ADR pays out 29.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ROYAL MAIL PLC/ADR and ONEX, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ROYAL MAIL PLC/ADR 1 4 1 0 2.00
ONEX 0 0 0 0 N/A

Insider and Institutional Ownership

0.1% of ROYAL MAIL PLC/ADR shares are held by institutional investors. Comparatively, 0.8% of ONEX shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

ROYAL MAIL PLC/ADR Company Profile

Royal Mail plc, together with its subsidiaries, operates as an universal postal service provider in the United Kingdom, the United States, and other European countries. It offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. The company also provides services for the collection, sorting, and delivery of parcels and letters; and designs and produces stamps and philatelic items, as well as offers media and marketing mail services. In addition, it operates ground-based parcel delivery networks in Europe comprising the GLS network that covers 41 European countries and nation states through wholly-owned and partner companies. Further, the company provides express and logistics services. Additionally, it engages in property holdings activities; and provision of facilities management services. The company serves consumers, small and medium-sized enterprises, retailers, and other postal operators, as well as business-to-business and business-to-consumer sectors. Royal Mail plc was incorporated in 2013 and is headquartered in London, the United Kingdom.

ONEX Company Profile

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; and London, United Kingdom.

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